Aug 24, 2012 - Naperville, Illinois-based Broadwind Energy Inc (NASDAQ:BWEN) yesterday said it had secured a credit facility of USD 20 million (EUR 15.9m) from AloStar Business Credit, part of Alabama-based AloStar Bank of Commerce.
The loan has a term of three years and gives Broadwind access to up to USD 20 million based on a borrowing base secured by eligible trade receivables and inventories. The interest rate is 30-day Libor plus 4.25%, with a Libor floor of 1%. The facility is secured by certain of fixed and other assets of the company.
Broadwind used the funding to refinance two credit facilities and other debt, and to cover costs related to the new facility.
President and chief executive Peter Duprey said the loan provided the company with greater financial flexibility and largely completed one of the three goals of its transformation strategy, under which its is diversifying partially away from wind energy towards industrial sectors, reducing costs and trying to create sustainable cash flow generation.
Broadwind offers gearing for the wind, oil and gas and mining sectors, wind towers, gearbox and blade remanufacturing, weldments as well as operations and maintenance services.